Tiger Inc. has two mos divisions. A Divisie podaces a technical component and its capacity is 10.000 units annually. Currently. A Divi s its product at a sale price of 519 per unit to external customers. Costs per unit CA Division Prime costs MOI variable Fixed MOH Marketing Variable expenses SO $30.00 $20.00 B Division could use the technical component in the manufacturing of its computer products for next year. Variable selling expenses on sales between divisions are reduced by 40 Alternatively. the Division could buy this component from a Chinese supplier for 5120 per unit. In addition, Division would have to pay customs duties of SIO per unit on imported components REQUIRED: 1. What are the factors Tiger Inc. might consider in setting an internal transfer policy? 2. Assume A Division is operating at 80% of its capacity and B Division needs 2,000 units of the technical component next year. 2.a) what is the range of acceptable transfer prices? 2.b) will transfers occur between the divisions? Why? 2.c) How much better or worse off will each division be if transfers occur? 3) Ignore questions 1 and 2 above. Assume Division A operates at 90% of its capacity and all the production could be sold to external customers. Division B needs 2,000 units of the technical component. 3.a) what is the range of acceptable transfer prices? 3.b) will the transfers occur between the divisions? Why? 3.c) Assume the transfers occur between the two divisions at $132 transfer price. Calculate the impact on operating income of each division